Turnkey Investing: How Hotel-Managed Properties Are Driving Real Estate Returns in the Dominican Republic

by Ryan Coyle

The Dominican Republic has quickly become one of the most compelling destinations for international real estate investors, not only because of its robust tourism industry and favourable tax environment but also due to the rise of hotel-managed properties. These projects offer investors a unique “hands-off” opportunity for potential cash flow, with the ease of professional management and the added benefit of lifestyle perks. For investors seeking both strong financial performance and minimal operational hassle, hotel-managed properties represent one of the most attractive entry points into the Dominican market.

Occupancy and Rental Performance

Tourism in the Dominican Republic is steadily expanding, fueled largely by North American demand: a trend that played a significant role in my own decision to invest. This steady influx of visitors continues to strengthen the vacation rental market, creating a reliable foundation for investors focused on income-generating properties.

What makes investing in the Dominican Republic even more appealing is that one of the more profitable ways to do so also happens to be among the simplest. Although many investors choose hotel-managed properties for their convenience and security, in the DR, one of the most compelling advantages of these units is their occupancy performance.

While Airbnb-style rentals typically average between 60% and 65% occupancy, hotel-managed properties in prime destinations such as Punta Cana achieve between 80% and 82%. This consistent performance reflects the strength of established hospitality brands and their ability to market effectively, maintain guest standards, and deliver repeat business.

Lock Up and Leave

Hotel-managed programs offer a streamlined way for investors to access the Dominican Republic real estate market without the day-to-day challenges of being a landlord. Developers deliver turnkey residences that are fully furnished and equipped—not only with major appliances and décor, but often with smaller essentials like linens and kitchenware. This ensures units are rental-ready from the outset, removing the need to source furniture, coordinate installations, or arrange for initial setup. Maintenance and security are also built into the model, further reducing the usual stresses of ownership.

Once enrolled in the rental program, investors can step back completely while the hotel or management company takes care of operations. Everything from marketing and advertising to guest bookings, housekeeping, repairs, and bill payments is managed on their behalf. The result is a genuine “lock up and leave” approach, ideal for those who live abroad, want to diversify into Caribbean property, or simply prefer their real estate holdings to function more like a traditional passive investment.

Luxury pool area with cabanas, stone columns, and classical-style architecture at sunset; people are relaxing and walking around the water.

Owner Benefits and Lifestyle Flexibility

Hotel-managed properties in the Dominican Republic are not just about rental income; they also provide tangible lifestyle benefits. Many programs allow owners to use their unit for personal stays, typically up to 60 nights per year. These stays do not compromise the overall return on investment, as ROI is calculated based on an assumed 28 days of use. Beyond personal usage, owners may also enjoy additional perks such as discounts on on-site services, spa treatments, or dining.

This hybrid model of an income-generating investment combined with personal vacation benefits makes hotel-managed properties particularly appealing to lifestyle investors who want a blend of return and enjoyment.

Hotel-Managed Residences in the DR Worth Exploring

Below are some hotel-managed properties in the Dominican Republic that combine thoughtful design, modern amenities, and seamless integration with their surroundings, offering a range of turnkey residences that stand out in the Dominican Republic’s real estate market.

River Island Bavaro

A resort-style community featuring 16 sparkling pools and lush landscaping. Its vibrant, family-friendly environment blends modern comforts with a tropical setting perfect for relaxed island living.

Modern resort buildings with rooftop gardens, multiple pools, palm trees, and lush landscaping, connected by walkways and bridges under a clear sky.

The Reef Playa Bonita

Eco-luxury beachfront residences designed to harmonize with the natural surroundings. Residents enjoy a blend of sustainable design, private outdoor spaces, and seamless indoor-outdoor living steps from the shore.

A beachfront resort with palm trees and modern buildings under a partly cloudy sky, viewed from the water.

Bonita Residences Cap Cana

Sophisticated beachfront condos with sleek modern architecture. Wide terraces and floor-to-ceiling windows frame stunning ocean views, creating a serene connection to the Caribbean coastline.

A large outdoor swimming pool with clear blue water, surrounded by palm trees and modern multi-story resort buildings under a sunny sky.

Crystal Garden Cap Cana

Upscale units feature rooftop pools and spa amenities. The design emphasizes open-air living, bringing sunlight and ocean breezes into every space for a truly resort-style experience.

Modern resort pool area with sun loungers, a shaded bar, palm trees, and people relaxing; multi-story building in the background under a clear blue sky.

Moon Garden 2 Bavaro

These modern, low-rise condos are set within verdant gardens. Thoughtful landscaping and communal areas foster a peaceful, private atmosphere while retaining easy access to the beach.

A person stands on a modern balcony overlooking landscaped grounds, palm trees, and curved apartment buildings under a clear sky.

Riviera Bay Cana Bay

Riviera Bay’s contemporary residences focus on spacious, airy interiors. Balconies and terraces offer expansive views, while the layout encourages an indoor-outdoor lifestyle.

Modern apartment building with balconies overlooks a rectangular outdoor pool and hot tub, surrounded by lounge chairs and umbrellas, at sunset.

Poseidonia Cana Bay

Stylish suites with modern architectural lines offer generous living spaces. Carefully curated communal areas enhance relaxation, from shaded patios to lush garden paths.

Modern hotel with balconies and large archways overlooks a rectangular outdoor pool, surrounded by lounge chairs, umbrellas, palm trees, and stone pillars. Several people relax and swim.

Secret Garden Bavaro

A tranquil enclave with beautifully landscaped gardens and quiet walking paths, it emphasizes privacy and immersion in natural surroundings without sacrificing modern comfort.

People walk and play games on a landscaped path surrounded by palm trees and modern apartment buildings under a clear blue sky.

Sun Garden Bavaro

Sun-filled apartments with expansive terraces and open-plan living. The community integrates greenery and leisure spaces, offering a relaxed, resort-like atmosphere.

Modern multi-story beachfront buildings with balconies are seen behind palm trees, reflected in a calm body of water under a clear sky with a flock of birds.

Wave Garden Cap Cana

A tropical retreat with contemporary interiors and airy layouts. Landscaped courtyards and outdoor spaces encourage connection to nature and a calm, island lifestyle.

Aerial view of a modern resort complex with curved buildings, pools, and landscaped grounds, near the coastline with ocean and urban area in the background.

Investment Performance and Accessibility

The combination of strong occupancy, turnkey delivery, and tax incentives under the Confotur law sets the Dominican Republic apart from other Caribbean markets. Hotel-managed properties here are also typically more accessible in price compared to similar offerings elsewhere, lowering the barrier to entry for many investors. With gross rental yields reaching up to 10% annually, and Confotur benefits that include 15 years of exemption from annual property taxes along with exemption from the 3% transfer tax, the overall return on investment becomes even more compelling.

Broader trends support these projections. The Dominican Republic continues to experience GDP growth among the highest in Latin America and the Caribbean, while its tourism sector expands year after year. Combined with steadily appreciating real estate values, hotel-managed investments offer both immediate income and long-term wealth-building potential.

A Path to Caribbean Real Estate

Hotel-managed properties in the Dominican Republic offer investors a rare blend of steady income and true convenience. With turnkey delivery, strong occupancy, and long-term growth drivers, they represent a practical path to building wealth in one of the Caribbean’s most dynamic markets.